monthly pay contract

The first step in choosing the best mobile phone deal is the choice of one of the three options available to UK subscribers.

The pay as you go option, or PAYG, is for light users that spend around about £10 every month

The monthly pay contract is suitable for those who wish to buy a pricey top of the range handset

The SIM only contract is suitable for the heavy users who already own a handset

Strictly speaking, there is no better alternative than the other. The choice of deal will ultimately depend on one’s situation and the amount of money they are willing, or normally spend on their phone every month. Here is an overview of the different options;

Pay as you go

With the pay as you go option, there is no need for a monthly fee. Also, one does not have to sign for any direct debit agreements. The pay as you go deal involves one paying for their mobile phone usage through the normal topping up of the credit in advance. After using up all the topped up credit, one will not be able to use their phones again until they top up. This option is ideal for those light users that spend between £10 and £15 every month.

Mobile phone contract

The traditional mobile phone contract will be spread over 12, 18 or 24 month periods. In this deal, one pays a fixed monthly fee by direct debit. With this, they get a free handset, normally subsidized, and a fixed number of minutes, texts and data. Typically, one has to commit to the length of the contract. Depending on the type of phone one wants with the deal, there might be need for an upfront fee. This deal is often helpful for those who desire the very latest smartphones but are not able to pay a large upfront amount. It is also suitable for those who run up large monthly phone bills regularly.

The third option is SIM only, where one gets a new SIM card, but not a new handset. There is still the typical allowance of calls, texts and data, all in different amounts and prices for one to choose depending on their usage every month. The monthly cost will, however, often be lower than it would for the regular monthly pay contracts. Another advantage of SIM only contracts is that unlike the lengthy contract mobile phone deals, the SIM only will typically only tie one down for a month.

In addition to the choice of contract, there are other factors to consider when buying a handset. For instance, many networks will typically offer mobile phone insurance with the phone deal. While these are necessary, they are often relatively pricey. Before taking out the insurance, one should find out whether their home insurance already covers the handset. Even after deciding on the type of deal to choose, do not simply settle on the first offer. Shop around a little and see what the other service providers have to offer.